ATS vs. Manual Resume Screening: Which Is Better for Employers?

 

In today's competitive job market, employers are inundated with resumes for each job opening. With hundreds or even thousands of applicants for a single position, effectively screening resumes is a critical yet time-consuming task. As a result, many companies rely on technology, specifically Applicant Tracking Systems (ATS), to streamline the hiring process. But with all the advantages of ATS, some still argue that manual resume screening by human recruiters offers a more nuanced approach.

This article will delve into the differences between ATS and manual resume screening, exploring their pros and cons to help employers decide which method is best suited for their hiring needs. We'll also look at how to combine both approaches to enhance your recruitment process.

What Is an Applicant Tracking System (ATS)?

An Applicant Tracking System (ATS) is a software application used by employers to manage and streamline the recruitment process. ATS automates the hiring workflow, from job postings to candidate screening and interview scheduling. These systems use algorithms to filter, rank, and manage applications, saving recruiters significant time and effort.

ATS software is commonly used to:

• Post job openings to various job boards and social media channels.
• Collect resumes and store them in a centralized database.
• Filter and rank resumes based on specific keywords, qualifications, and experience.
• Track candidate progress throughout the hiring process.

Popular ATS platforms include Workday, Greenhouse, Lever, iCIMS, and BambooHR.

Manual Resume Screening: The Traditional Approach

Manual resume screening involves human recruiters reviewing resumes one by one to assess whether a candidate is a good fit for a role. This process often includes scanning resumes for keywords, qualifications, experience, and cultural fit.

Human recruiters are tasked with:

• Reading each resume carefully and assessing experience, skills, and qualifications.
• Evaluating personality and cultural fit based on information gleaned from the resume and cover letter.
• Shortlisting candidates for further steps in the hiring process, such as interviews and assessments.

Manual screening is highly subjective and relies on the expertise and intuition of the recruiter. While this can result in more personalized decision-making, it can also introduce human bias and errors.

Pros and Cons of ATS Resume Screening

Pros of ATS

1. Efficiency
   ATS can process large volumes of resumes in a fraction of the time it would take a human recruiter to do the same. With automatic parsing of resumes, the system can quickly filter out unqualified applicants, leaving the recruiter with a shortlist of the most relevant candidates.

2. Consistency
   An ATS applies the same criteria across all resumes, ensuring that no candidate is overlooked based on subjective judgment. This consistency can help eliminate unconscious bias, promoting a more equitable hiring process.

3. Cost-Effective
   Using an ATS can significantly reduce the need for manual labor, saving companies time and money in the initial stages of hiring. Instead of spending hours reviewing resumes, recruiters can focus their efforts on interviewing the best candidates.

4. Scalability
   For companies that hire large numbers of employees or for positions that attract many applicants, an ATS is crucial. It can handle thousands of resumes at once without sacrificing quality.

5. Keyword Matching
   ATS scans resumes for specific keywords that match job descriptions. This ensures that applicants who possess the necessary skills and experience are identified quickly.

6. Improved Collaboration
   ATS platforms often include collaborative features that allow team members to comment on resumes, share feedback, and track candidate progress through the recruitment pipeline.

Cons of ATS

1. Over-Reliance on Keywords
   While keyword matching is one of the primary strengths of ATS, it can also be a limitation. Candidates who use different phrasing or terms than those programmed into the ATS might not be shortlisted, even if they are a strong fit for the role.

2. Inability to Assess Soft Skills
   ATS systems primarily focus on hard skills, qualifications, and experience. However, they cannot evaluate soft skills such as communication, teamwork, or leadership abilities, which are critical in many roles.

3. False Positives and Negatives
   ATS is not perfect. It may flag a resume as irrelevant based on poorly parsed data or misinterpretation of keywords, or it might highlight resumes that don’t fully match the job description.

4. Customization Challenges
   Some ATS platforms are rigid in terms of customization. If a company has a highly specialized role or niche industry, the ATS may not be flexible enough to accommodate unique requirements.

5. Candidate Experience
   Some candidates dislike applying through ATS systems due to the complexity and lack of personalization. The process can feel impersonal, and applicants may never receive feedback if their resumes are rejected by the ATS.

Pros and Cons of Manual Resume Screening

Pros of Manual Screening

1. Human Insight
   A human recruiter brings critical thinking, intuition, and emotional intelligence to the table. They can assess a candidate’s overall fit with the team, culture, and company values, which an ATS cannot measure.

2. Personalized Approach
   Manual screening allows recruiters to tailor their approach to the specific needs of the job and the candidate. It provides an opportunity for a recruiter to engage with applicants on a deeper level, potentially identifying qualities or experiences that an ATS might miss.

3. Soft Skills Evaluation
   Recruiters can better assess soft skills, such as communication abilities, leadership potential, and problem-solving skills, which can be essential for many roles.

4. Flexibility
   Manual resume screening allows for greater flexibility in evaluating candidates. For example, a recruiter can consider experience in unconventional fields or candidates with nontraditional career paths who might be overlooked by an ATS.

5. Reduced Dependence on Keywords
   Since manual screening doesn't rely on an automated keyword search, candidates who might not use the “exact” terminology but still have the required skills are more likely to be considered.

Cons of Manual Screening

1. Time-Consuming
   Manual resume screening is a labor-intensive process, especially when dealing with a large number of applications. Reviewing resumes one by one can take hours or even days, diverting valuable time away from other critical tasks in the recruitment process.

2. Inconsistent Screening
   Human bias can affect manual resume screening. Recruiters might make decisions based on unconscious preferences or overlook candidates who don't immediately fit the expected mold. This inconsistency can lead to missed opportunities or unfair practices.

3. Higher Costs
   If a company relies solely on manual screening, it can require more human resources, increasing the costs of the recruitment process. The process also becomes less scalable as the company grows.

4. Risk of Errors
   Manual screening increases the chance of overlooking qualified candidates or making mistakes in assessing qualifications. Even the most experienced recruiter can miss important details when sorting through hundreds of resumes.

5. Limited Collaboration
   While many recruitment teams use emails or shared documents for collaboration, the manual process often lacks the centralized feedback and transparency that an ATS offers. This can lead to communication breakdowns and missed opportunities.

The Case for Combining ATS and Manual Screening

While both ATS and manual resume screening have their merits, many organizations are adopting a hybrid approach to leverage the strengths of both systems. By using ATS as an initial filter and having human recruiters review the shortlist, companies can streamline their hiring process while maintaining the personal touch that comes with manual screening.

How the Hybrid Approach Works:

1. ATS for Screening and Sorting
   The ATS scans resumes for keywords, qualifications, and experience, quickly identifying a pool of candidates that meet the minimum requirements. This reduces the number of resumes that recruiters need to manually review.

2. Manual Screening for Cultural Fit and Soft Skills
   Once the ATS filters out unqualified candidates, human recruiters can take over. They can assess how well the candidate might fit within the company culture, analyze their soft skills, and evaluate any nuanced aspects of the resume that the ATS may have missed.

3. Feedback and Refinement
   Recruiters can fine-tune the ATS's settings based on their manual experiences, adjusting the system’s filters and criteria to improve the quality of the shortlist over time.

4. Continuous Improvement
   By combining both approaches, companies can create a continuous feedback loop that refines the hiring process, improving the accuracy of both the ATS and the manual evaluation over time.

Conclusion: Which Is Better for Employers?

The choice between ATS and manual resume screening depends largely on the size of the company, the volume of applicants, and the complexity of the roles being filled.

• For large organizations with high-volume hiring needs, ATS is indispensable. It saves time, improves efficiency, and ensures consistency in the recruitment process. However, relying exclusively on ATS may result in missed opportunities for candidates with unconventional backgrounds or skills that don't fit neatly into the ATS's algorithm.

• For smaller companies or niche roles, manual resume screening may be a better option, as it allows recruiters to make more nuanced decisions. While manual screening is more time-consuming and prone to bias, it can yield better results for companies looking for a very specific type of candidate or seeking a personalized hiring process.

Ultimately, the best approach is often a hybrid model—using ATS to handle the heavy lifting and relying on human expertise for final decisions. This way, companies can enjoy the best of both worlds: the efficiency of ATS and the nuanced, human-centered decision-making of manual resume screening.

By understanding the strengths and limitations of each approach, employers can fine-tune their recruitment processes to ensure they find the right candidates faster and more effectively.